I have no idea if your advisor/broker is ripping you off! Why don’t you know? You’re the one who’s paying him/her!!! Maybe paying a whole lot, at that.
Why don’t you stop reading right now, and send an email to your advisor asking one simple question:
Hi. I’m reviewing what I’ve paid for various services over the past few years but I can’t seem to find any figures for my fees/commissions with you.
Can you tell me how much I’ve paid you and your firm over the past two (2) years? Please include all fees and commissions paid. Also, I’d prefer the information in a letter or email so I have it for my records. Thank you for helping me out with this information.
Sincerely, Your Client
Does sending this email to your advisor make you uncomfortable? If so, why? Can you think of any other service provider you have a relationship with where you either don’t already have this information or can very easily get it, without feeling uncomfortable about it? (Cable bill, cell bill, CPA, Attorney, snow plowing guy, wedding planner, daughter’s dance instructor… you get the idea).
You may not like what some of these services cost, but at least that information is open and available. I’ll bet your other planning professionals, your CPA and Attorney, provide a written bill for you. Again….you don’t have to like the cost but at least you can make an informed decision whether you got your money’s worth or not.
If discussing fees with your advisor is something you can’t, won’t or would prefer not to do, then there’s a problem! Often, this is because you wound up with that advisor from a personal relationship rather than a business relationship. That’s OK, but now it’s also a business relationship. Deep down, might you actually be afraid to potentially find out your friend is really a very expensive friend? Think about it.
I’d be glad to review your account statements with you to help determine what the costs are. That’s not the only thing that matters, obviously, but it is important. You can then make better, more informed decisions about your finances.
Send that email today!!! Or call Hamilton Wealth Management (585) 381-9870 for a review.
The views expressed are those of THOMAS HAMILTON and not necessarily the opinion of LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.